SBI, ICICI, and Major Banks Roll Out High-Yield FCNR(B) Deposit Schemes for NRIs Earning Up to 7.10%
In a major windfall for Non-Resident Indians (NRIs), leading Indian financial institutions including the State Bank of India (SBI), ICICI Bank, and HDFC Bank have launched heavily upgraded Foreign Currency Non-Resident (FCNR-B) deposit schemes. This aggressive hike in NRI fixed deposit (FD) interest rates comes directly on the heels of the Reserve Bank of India (RBI) opening a special foreign currency swap window for banks, which remains active until September 30, 2026.
The RBI Strategy: Eyeing $60–$70 Billion Inflows
The RBI's strategic swap window effectively relieves commercial banks from the hefty currency hedging costs typically associated with absorbing foreign deposits. With these overhead costs absorbed by the central bank, local institutions now have the financial manoeuvring room to pass those savings directly to depositors in the form of bumper interest rates. Financial experts project that this highly lucrative deposit window will successfully attract a massive $60 billion to $70 billion in foreign capital from the Indian diaspora globally.
Which Bank Offers the Best NRI Returns?
Institutions across the board are rolling out competitive multi-year lock-in schemes to capitalise on the RBI's swap window. Here is a breakdown of the new FCNR(B) US Dollar deposit interest rates offered by top Indian banks:
| Bank | Highest USD Rate | Key Scheme Details |
|---|---|---|
| AU Small Finance Bank | 7.10% | Massive hike from 5.15%; applicable on 3 to 5-year FDs effective June 10. |
| ICICI Bank | 6.50% | Applicable on select new NRI fixed deposits effective June 11. |
| Kotak Mahindra Bank | 6.15% | 6.15% for deposits >$1M; 6.00% for deposits <$1M (3-5 years) effective June 11. |
| State Bank of India (SBI) | 6.00% | 5-year term under the new "SBI Advantage FCNR(B)" scheme; features a 1-year lock-in. |
| HDFC Bank | 6.00% | Applicable on 3 to 5-year FCNR(B) deposits opened between June 10 and September 30. |
| Bank of Baroda | 6.00% | Max 6% on USD. Also offers up to 5.15% on CAD and 4.75% on GBP/AUD. |
Note: The newly launched "SBI Advantage FCNR (B)" scheme specifically targets deposits over US$1 million, offering 5.50% for 3 to 4 years, 5.75% for 4 to 5 years, and peaking at 6.00% for full 5-year terms.
Why FCNR(B) Accounts Are a Favourite Among NRIs
Beyond the newly inflated interest rates, FCNR(B) accounts remain one of the most reliable investment vehicles for the global Indian community. These specialised accounts allow NRIs to park their funds in India in their native foreign currency (such as USD, GBP, EUR, AUD, or CAD) rather than converting them to Indian Rupees. Because the funds are never converted, both the principal deposit and the accrued interest are completely shielded from exchange rate fluctuations and rupee depreciation risk. Furthermore, these funds are fully and freely repatriable, making them an incredibly secure, high-yield, and liquid asset for overseas investors looking to capitalise on India's booming financial sector.
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